Retirement Trends

Access is just the starting point to help employees save for retirement – automated features play a critical role in moving the needle, according to the new Principal Real Life Retirement Journey survey.<br/>

Most employers understand the basics of annuities but need help getting conversational about them with employees, similarly to when target-date portfolios were first offered in 1994, according to TIAA’s report.

Some of the biggest changes that employers must comply with will go into effect in 2025 – required auto-enrollment into new retirement plans, higher catch-up contribution limits, student loan payment matching and updates to long-term part-time worker retirement eligibility.<br/>

Lawmakers are already thinking through new ways to further increase access to retirement savings and coverage with another retirement bill, while there’s a high probability that President-elect Trump will extend the 2017 Tax Cuts and Jobs Act, benefiting retirement savings.&nbsp;

Gen Z and millennials are particularly susceptible to social media financial advice, which is why employers should host financial literacy workshops, webinars, or provide regular communications that raise awareness about the risks of unverified financial advice.

More than 15,000 retirement plans, representing approximately 5 million participants, have signed up for auto portability – which moves 401(k)s to new retirement plans – in the last year, says the Portability Services Network.